Landlords expect stronger returns on UK property investments in 2013

Landlords across the UK expect to see an even better return on their investments over 2013 as demand for rental property remains strong and even carries on growing.

That's according to the latest report from Rightmove, which points to bright times ahead for landlords with one or more properties being rented out to private tenants.

According to the property's websites research, one in four landlords is likely to put their rents up in 2013, with one third of these set to introduce increases of five per cent or more.

Notably, however, the study also found evidence to suggest that the majority of UK landlords, and in particular of those with properties outside of the major cities, are likely to be satisfied with keeping rent levels constant for the foreseeable future, with Rightmove director Miles Shipside noting that such "restraint" comes as landlords are growing increasingly wary of "squeezing tenants' finances too hard".

"This combination of apparent benevolence and bullish hotspots may give a less racy rent rise outlook overall, but does not mask the fact that some tenants are again in for a rent rise shock," he said.

Other notable findings made for this new report include the fact that more than half of existing tenants would like to make the move onto the property ladder themselves but are financially unable to do so, as well as the fact that the average tenant now spends 39 per cent of his or her take-home pay on rent.

News of the anticipated rent rises comes soon after Emerging Real Estate stated its confidence that investors with property in London are set to enjoy strong returns over the next few years as demand for rental accommodation in the capital remains as high as ever.

According to the company's director Tim Morgan, while prices are higher in London, the career opportunities, as well as the cultural vibrancy, on offer in the city will carry on drawing in both Britons from elsewhere in the country and also overseas nationals.